IFC invests $27 million into Turkish appliance manufacturer

The International Finance Corporation, the private sector financing arm of the World Bank Group, has signed an agreement to invest up to $27 million equivalent in Arçelik, a Turkey-based home applianc

The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, has signed an agreement to invest up to $27 million equivalent in Arçelik, a Turkey-based home appliance manufacturer.

Arcelik, a household brand name in Turkey, is entering the international arena, through its first production plant in Eastern Europe. The investment will enable Arcelik to acquire and modernize Arctic, a Romanian producer of refrigerators.

"IFC has a long-standing relationship with Arçelik dating back to early 1990s and IFC is particularly pleased to support Arcelik's international expansion plans," said IFC's executive vice president Peter Woicke.

"Part of IFC's strategy in Turkey is to support viable investments of internationally competitive Turkish enterprises," said director of IFC's Southern Europe and Central Asia Department Khosrow Zamani. He added, "This investment fits well with IFC's strategy. Furthermore, Arçelik's role as a stable employer and a provider of labor opportunities at the small and medium enterprises will be extended to neighboring countries."

Arçelik is Turkey's home appliance leader with consolidated sales of about $1.6 billion in 2002, of which nearly 50 percent comprised of exports. In recent years, as part of its strategy to decrease its dependency on the domestic market and diversify its revenue base, Arçelik has increased its exports significantly. This strategy is critical in light of increasing global competitiveness and to secure a long-term, stable growth in the region. Arçelik was established in 1955 and is one of the largest private sector enterprises in Turkey, with a workforce of about 6,000. — (menareport.com)